Market extends losses in late trade

The market slipped deep into the red in late trade as IT and metal stocks tumbled. Index heavyweights Reliance Industries and ICICI Bank faltered. All the sectoral indices on BSE were in red. Banking, power, realty and capital goods stocks declined. Market breadth though positive, it weakened substantially in late trading compared to strong breadth earlier during the day. European markets, which opened after Indian market, were in green. Asian markets, which opened before Indian market, were mixed.

Worries of impact of credit troubles on the broader US economy heightened after Goldman Sachs on Monday, 19 November 2007, downgraded Citigroup's stock to sell from neutral, forecasting more write-downs by the largest US bank because of mortgage losses.

The 30-share BSE Sensex provisionally ended down 340.05 points or 1.73% at 19,293.31. Sensex hit a low of 19,196.41 in late trade. At day’s low of 19,196.41 Sensex had lost 436.94 points.

The S&P CNX Nifty was down 118.35 points or 2% to 5,789.30, as per provisional close.

The market had bounced back from lower level in early afternoon trade amid volatility as some Asian markets came off lower level. Sensex touched a high of 19,714.22 in early afternoon trade. At day's high, Sensex had risen 80.86 points. The market had opened with a downward gap in early trade tracking weak global markets.

The market breadth was positive. On BSE, 1,593 stocks advanced, while 1,217 stocks declined and 41 stocks were unchanged. 25 out of 30 stocks from the Sensex pack were in red.

The BSE Mid-Cap index declined 0.94% to 8,648.96 and the BSE Small-Cap index rose 0.29% to 10,704.37. Both these indices outperformed Sensex.

IT stocks extended losses in late trade on concerns over the US economy. Infosys (down 3.99% to Rs 1,555), Tata Consultancy Services (down 2.65% to Rs 962), Wipro (down 1.95% to Rs 448.50) and Satyam Computer Services (down 1.57% to Rs 416) edged lower.

State Bank of India (SBI) declined 1.08% to Rs 2,280. As per reports it is seeking to expand its foothold beyond immediate associate banks by possibly absorbing UCO Bank and Dena Bank. UCO Bank jumped 7.99% to Rs 61 and Dena Bank soared 5.46% to Rs 92.75.

ICICI Bank (down 1.33% to Rs 1,171.05) and HDFC Bank (down 1.04% to Rs 1,638) edged lower.

Index heavyweight and India’s largest private sector firm by market capitalisation Reliance Industries was down 1.74% to Rs 2,803, off session's high of Rs 2,857.80.

Capital goods stocks declined. Bharat Heavy Electricals (down 4.65% to Rs 2,654.20), Suzlon Energy (down 2.54% to Rs 2,041.05) and Larsen & Toubro (down 0.73% to Rs 4,336.35) edged lower.

Power stocks fell. Tata Power Company (down 4.09% to Rs 1,220.05), NTPC (down 1.58% to Rs 261.40) and Reliance Energy (down 1.27% to Rs 1,804), edged lower.

Realty stocks declined. DLF declined 3.78% to Rs 912. Merrill Lynch (ML) has reportedly acquired 49% equity stake in seven residential projects of DLF for Rs 1,481 crore.

Unitech declined 4.64% to Rs 379.90, on reports the company foraying into Mumbai with a commercial project spread over 80 acre near the Bandra Kurla complex. However Indiabulls Real Estate rose 0.68% to Rs 663.50.

Tata Motors (up 0.77% to Rs 708), ACC (up 0.38% to Rs 1,088), Hindustan Unilever (up 0.34% to Rs 205.50), Tata Steel (up 0.25% to Rs 864.90) and Bajaj Auto (up 0.16% to Rs 2,430) edged higher.

Hindalco Industries (down 5.5% to Rs 194.15), Bharat Heavy Electricals (down 4.65% to Rs 2,654.20), Maruti Suzuki (down 4.11% to Rs 1,010.25) and Grasim Industries (down 3.48% to Rs 3,735) edged lower.

Jindal Stainless was the top gainer from A group and rose 15.29% to Rs 204. Fertilisers and Chemicals Travancore (up 4.95% to Rs 47.70), D- Link (India (up 4.54% to Rs 91), MIRC Electronics (up 4.36% to Rs 33.50), Nirma (up 4.02% to Rs 220) were other major gainers from A group.

European markets opened on a positive note. France’s CAC 40 (up 0.16% to 5,440.95), Germany’s DAX (up 0.45% to 7,547.96) and UK’s FTSE 100 (up 0.08% to 6,126.60) edged higher.

Most of the Asian markets were in the green. Hong Kong's Hang Seng (up 1.13% to 27,771.21) Japan's Nikkei rose 1.12% to 15,211.52 and Singapore's Straits Times gained 0.78% at 3,438.27. Taiwan Weighted index was flat at at 8,680.

South Korea's Seoul Composite index (down 1.12% at 1,872.24) was trading in the red.

US markets suffered sharp losses on Monday, 19 November 2007, after a broker downgrade of Citigroup sparked concerns of more mortgage losses and fears of slumping auto sales hammered GM shares. The Dow Jones industrial average plunged 218.35 points, or 1.66%, to 12,958.44. The S&P 500 index fell 25.47 points, or 1.75%, to 1,433.27, and the Nasdaq Composite slipped 43.86 points, or 1.66%, to 2,593.38.

Crude oil prices edged lower in Asian trade on Tuesday, 20 November 2007 with the dip seen as temporary because traders were still worried about tight global supplies. New York's main contract, light sweet crude for January delivery was down 26 cents at $94.38 a barrel. Brent North Sea crude for January delivery eased 33 cents to $91.95.

Market posted losses for third straight day on Monday, 19 November 2007. The 30-share BSE Sensex lost 64.53 points or 0.33% at 19,633.36 while the broader CNX S&P Nifty was up 0.8 points or 0.01% at 5,907.65 on that day.

As per provisional data, FIIs sold shares worth a net Rs 371.04 crore, while domestic institutional investors (DIIs) were net sellers of shares worth Rs 63.45 crore on Monday, 19 November 2007.